LONDON (ShareCast) - (Sharecast News) - Exploration, development and production company Mosman Oil and Gas has agreed the terms of a farmout of the EP 155 permit application in Australia, it announced on Monday.
The AIM-traded firm owns one granted permit, EP 145, and one application, EPA 155, in the Amadeus Basin in the Northern Territory.

It said it had now entered into a farmout agreement with an Australian company, Westmarket Oil & Gas, which is a wholly-owned subsidiary of unlisted public company Georgina Energy - a helium focused business with various assets in Australia.

The farminee would be responsible for the native title negotiations required for the permit to be granted.

Mosman said the farminee would also undertake technical work in accordance with the permit work programme, and thus earn a 70% working interest and become operator of the permit.

The company would retain a 30% working interest in the permit.

At the time of drilling of a well, the farminee could elect to carry Mosman through the cost of the well, and in that case would earn a further 15% working interest, with Mosman retaining a 15% working interest in the permit in that case.

In addition to the forward work programme obligations, Mosman would receive an immediate contribution of AUD 15,000 from the farminee in consideration for past costs, and a further AUD 15,000 following completion of the required seismic re-processing work.

Mosman said it was retaining its 100% interest in the EP 145 permit.

"We are pleased to have concluded the farmout on EPA 155 so that the project can be progressed at no cost to Mosman," said chairman John Barr.

"The farminee interest is an endorsement of the potential of the permit area for both hydrocarbons and helium."

At 1452 BST, Mosman shares were up 206.91% at 0.17p.

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